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Regular Session, 2011
SENATE BILL NO. 121
BY SENATOR RISER
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
UNEMPLOYMENT COMP. Provides an additional exception regarding unemployment
benefit payments that are not charged to an employer's experience rating. (8/15/11)
AN ACT1
To amend and reenact R.S. 23:1533 and 1552(E), relative to unemployment compensation2
experience rating records; to provide for an exception for unemployment caused by3
acts or omissions of third parties; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 23:1533 and 1552(E) are hereby amended and reenacted to read as6
follows:7
§1533. Experience rating records; administrator's duty to prepare8
(1) A. The administrator shall prepare and maintain an experience rating9
record for each employer, and shall credit such record with all the contributions paid10
by him with respect to wages paid for the calendar quarter beginning October 1,11
1941, and for each calendar quarter thereafter. Nothing in this Chapter shall be12
construed to grant any employer or any individual performing services for him prior13
claims or rights to amounts paid by the employer into the fund. The administrator14
shall terminate the experience rating record of an employer who has ceased to be15
subject to this Chapter, or may do so provided the employer has had no employment16
in this state for a period of three consecutive calendar years. Benefits accruing and17 SB NO. 121
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paid on and after October 1, 1941, to an individual in accordance with the provisions1
of this Chapter shall be charged against the experience rating records of his2
base-period employers except subject to the following limitations:3
(1) that oOnly those benefits paid to an individual in accordance with the4
provisions of R.S. 23:1611 through R.S. 23:1616 which are not reimbursed from5
federal funds shall be charged against the experience rating records of his6
base-period employers.7
(2) That bBenefits paid to an individual pursuant to R.S. 23:1635 shall not8
be charged against the experience rating records of a claimant's base-period9
employers if it is finally determined that such claimant was not entitled to such10
benefits. and11
(3) That bBenefits paid to an individual who continues to remain in the12
employ of a base-period employer without a reduction in the number of hours13
worked or wages paid shall not be charged against the experience rating records of14
such employer.15
(4)(a) Benefits shall not be charged against the experience rating records16
of a claimant's base period employer if both of the following conditions are17
met:(i) Benefits are paid in a situation in which the unemployment is caused18
solely by an act or omission of any third party or parties, or solely by such act19
or omission in combination with an act of God or an act of war. The20
determination of the responsibility of any third party or parties shall be as21
determined by the Oil Pollution Act, 33 U.S.C. 2701, et seq.22
(ii) Reimbursement for such benefits shall have been paid by the23
responsible third party or parties into the Unemployment Trust Fund.24
(b) The amount owed by any responsible third party or parties shall25
equal the amount of regular and extended benefits paid to individuals as a result26
of the act or omission attributed to the responsible party or parties.27
(c) At the end of each calendar quarter, or at the end of any other period28
as the administrator may prescribe by regulation, the administrator shall29 SB NO. 121
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charge the responsible party or parties accordingly.1
(d) Paragraph (4) of Subsection A of this Section is remedial and shall2
be retroactive to January 1, 2010.3
B. The amount so chargeable against each base-period employer's experience4
rating record shall bear the same ratio to the total benefits paid to an individual as the5
base-period wages paid to the individual by such employer bear to the total amount6
of base-period wages paid to the individual by all his base-period employers;7
provided, however, that all such charges may be computed to the nearest multiple of8
one dollar.9
(2) C. If the total of the benefits which were chargeable to an employer's10
experience-rating record, and were paid on or before July 31, immediately11
succeeding the 1975 computation date as defined in R.S. 23:1542(1), with respect12
to weeks of unemployment beginning prior to said computation date exceeds the13
total of his contributions paid on or before July 31, immediately succeeding the said14
1975 computation date with respect to wages paid by him on or prior to said15
computation date, such excess benefit charges shall be cancelled from his16
experience-rating record for all of the purposes of R.S. 23:1536 with respect to the17
1975 computation date and all subsequent computation dates.18
* * *19
§1552. Financing benefits paid to employees of nonprofit organizations and of the20
state, its instrumentalities and political subdivisions and Indian tribes21
or tribal units22
* * *23
E.(1) Each employer who is liable for payments in lieu of contributions shall24
pay to the administrator for the fund the amount of regular benefits plus the amount25
of extended benefits paid (not reimbursed by the federal government) that are26
attributable to services in the employ of such employer, except in the following27
circumstances:28
(1)(a) that those benefits Benefits paid to an individual pursuant to R.S.29 SB NO. 121
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23:1635 or through any administrative error shall not be charged to the employer's1
account if it is finally determined that such claimant was not entitled to such benefits2
or the employer is held not to be liable for such payments , and .3
(2)(b) that benefits Benefits paid to an individual who continues to remain4
in the employ of a base-period employer without a reduction in the number of hours5
worked or wages paid shall not be charged to the employer's accounts. In addition,6
any payment previously tendered the administrator on behalf of claims subject to7
these exceptions, which occur subsequent to July 23, 1981, shall be immediately8
credited to the employer's account9
(2) If benefits paid to an individual are based on wages paid by more than10
one employer and one or more of such employers are liable for payments in lieu of11
contributions, the amount attributable to each employer who is liable for such12
payments shall be an amount which bears the same ratio to the total benefits paid to13
the individual as the total base-period wages paid to the individual by such employer14
bear to the total base-period wages paid to the individual by all of his base-period15
employers.16
(3)(a) Benefits shall not be charged to the base period employer's17
account if both of the following conditions are met:18
(i) Benefits are paid in a situation in which the unemployment is caused19
solely by an act or omission of any third party or parties, or solely by such act20
or omission in combination with an act of God or an act of war. The21
determination of the responsibility of any third party or parties shall be as22
determined by the Oil Pollution Act, 33 U.S.C. 2701, et seq.23
(ii) Reimbursement for such benefits shall have been paid by the24
responsible third party or parties into the Unemployment Trust Fund.25
(b) The amount owed by any responsible third party or parties shall26
equal the amount of regular and extended benefits paid to individuals as a result27
of the act or omission attributed to the responsible party or parties.28
(c) At the end of each calendar quarter, or at the end of any other period29 SB NO. 121
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as the administrator may prescribe by regulation, the administrator shall1
charge the responsible party or parties accordingly.2
(d) Paragraph (3) of Subsection E of this Section is remedial and shall3
be retroactive to January 1, 2010.4
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Mary Dozier O'Brien.
DIGEST
Riser (SB 121)
Present law provides for three exceptions to the requirement that unemployment benefits
paid are included in the experience rating records of employers.
Proposed law provides for a fourth exception stating that when the payment of benefits is
caused by an act or omission of a third party, such benefits shall not be included in the
experience rating of such employer.
Proposed law provides that such a determination of fault of a third party shall be determined
in accordance with the Oil Pollution Act, 33 U.S.C. 2701, et seq.
Proposed law requires that the amount of both regular and extended benefits paid out due
to the fault of a third party or parties shall be reimbursed by the responsible third party or
parties.
Proposed law provides relative to employers who directly reimburse the Unemployment
Trust Fund for benefits paid to their employees, and proposed law states that these
employers shall also be repaid by the responsible third party or parties.
Proposed law is remedial in nature and shall be retroactively applied back to January 1,
2010.
Effective August 15, 2011.
(Amends R.S. 23:1533 and 1553(E))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Labor and Industrial
Relations to the original bill.
1. Amendments require that the amount of both regular and extended benefits
paid out due to the fault of a third party or parties shall be reimbursed by the
responsible third party or parties.
2. Amendments delete the reference to the U.S. Coast Guard.
3. Amendments insert the same exception language in the part of Title 23 that
deals with employers who directly reimburse the Unemployment Trust Fund
for benefits paid to their employees.
4. Amendments provide that all sections of the bill are remedial in effect and
shall apply retroactively to January 1, 2010. SB NO. 121
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5. Amends R.S. 23:1552(E).